NC Department of Public Instruction
Business Rules for Chart of Accounts Edits – LEAs
The NC Department of Public Instruction requires LEAs to use a standard Chart of
Accounts (COA). The LEAs should always use valid purpose and object codes,
regardless of Fund. There is a copy of the COA in BUD on their AS/400. There is
also a copy of the COA on the internet:
https://licsalweb.dpi.state.nc.us/licsal/salary/salarydocuments.asp
Because the LEAs do not consistently use valid account codes, we need the vendors to
automate COA verifications for all funds.
We do not validate the last 8 digits of account. We will only validate the account down
to the object (i.e., the first 11 digits):
Fund, 1 digit
Purpose, 4 digits,
PRC, 3 digits, and
Object, 3 digits.
Valid account combinations for State and Federal funds. This file is not by year, but has
effective dates as part of the file.
1. Only values allowed for Fund are 1-9. The titles of each Fund are listed below:
- Fund 1 = State Public School Funds from Dept of Public Instruction (DPI)
- Fund 2 = Local Current Expense Fund
- Fund 3 = Federal grant Fund from DPI
- Fund 4 = Capital Outlay Fund
- Fund 5 = Multiple Enterprise Funds, includes Child Nutrition
- Fund 6 = Trust and Agency Funds
- Fund 7 = Reserved for LEA or Charter School local use
- Fund 8 = Other Specific Revenue Fund
- Fund 9 = Capital Assets
2. If the first digit of purpose code is a 3 or 4, then it is a revenue code. If the fund
is 3 (Federal), with purpose code 3 or 4, then the PRC cannot be 000. If the fund
is 1 (State), the revenue codes are not required to have associated PRCs and
object codes. However, if a PRC is used for Fund 1 and 3, then the PRC should
be validated against the list of PRCs. The only Revenue codes allowed are the
ones published in the COA. Vendor should validate all four digits with the
following exceptions:
 If purpose 3101-3249, then validate on the first two digits of purpose only
(make digits three and four = 00), except for purpose code 3211.
N.C. Department of Public Instruction
Division of School Business
Contract: Roxane Bernard
(919) 807-3725 or roxane.bernard@dpi.nc.gov
 If purpose 3250-3259, then validate on the first three digits of purpose only
(make digit four = 0).
 If purpose 3400-3459, then validate on the first two digits of purpose only
(make digits three and four = 00)
 If purpose 3460-3469, then validate on the first three digits of purpose only
(make digit four = 0).
 If purpose 3590-3599, then validate on the first three digits of purpose only
(make digit four = 0).
 If purpose code 3600-3799, then validate on the first two digits of purpose
code only (make digits three and four =00).
 If purpose 3800-3809, then validate on the first three digits of purpose only
(make digit four = 0).
 If purpose 3850-3859, then validate on the first three digits of purpose only
(make digit four = 0).
 If purpose 4110-4149, then validate on the first three digits of purpose only
(make digit four = 0).
 If purpose 4210-4219, then validate on the first three digits of purpose only
(make digit four = 0).
 If purpose 4410-4459, then validate on the first three digits of purpose only
(make digit four = 0).
 If purpose 4470-4499, then validate on the first three digits of purpose only
(make digit four = 0).
 If purpose 4820-4869, then validate on the first three digits of purpose only
(make digit four = 0).
 If purpose 4880-4899, then validate on the first three digits of purpose only
(make digit four = 0).
 If purpose 4910-4919, then validate on the first three digits of purpose only
(make digit four = 0).
3. For Funds 1-8, if the first digit of purpose code is a 5-9, then it is an expenditure
code. Vendors should validate purpose code as follows:
 If purpose 5000-9999, then validate on the first three digits of purpose only
(overlay digit four with 0), with the following exceptions:
 If Purpose codes 8100 or 8200, validate on the entire purpose.
 If Purpose code 81xx/object 472, validate on the first two digits of purpose
(overlay digits 3-4 with 00)
 If Purpose Code 9000, these are capital outlay projects and digits two
through four represent project numbers. (overlay digits 2-4 with 000)
4. Expenditures must have valid PRC and object codes. PRC and Object codes
= 000 are not allowed in any Fund if the first digit of Purpose code is equal to 59 for Funds 1-8. Fund 9 is excluded from this rule.
N.C. Department of Public Instruction
Division of School Business
Contract: Roxane Bernard
(919) 807-3725 or roxane.bernard@dpi.nc.gov
5. Validate PRCs for Funds 1 and 3. PRCs are unique for Funds 1 and 3. If the
PRC is valid for Fund 1, it will not be valid for Fund 3 and vice versa.
6. Some PRCs have an open COA. If the PRC has an Open COA, then the OPEN
COA flag is set to Y. PRCs with Open COA will not have purpose/object
combinations; therefore, vendors will need to validate that the LEA is using a
valid purpose code, using the rules for validating purpose outlined in #3 above,
and a valid object code.
7. Validate accounts in Funds 1 and 3. Be sure to check effective dates. Only
exceptions are PRCs with Open COA, and the use of the last 2-3 digits of
purpose code as explained in #2 and #3 above.
8. For expenditures in Funds other than 1 and 3, verify Purpose and Object codes
used are valid per the Purpose Code list and the Object Code list. Note Purpose
Code exceptions in #2 and #3 above.
9. State Textbook should be captured in Fund 1:
- Revenue = 3211,
- PRC = 130, and
- Expenditure Object = 412
Note: Object 412 is not allowed in any other fund except Fund 1 (State).
- Purpose Code = 5110
10. If Purpose Code = 3100, use in Fund 1 only
11. Purpose Code = 3600, use in Fund 3 only
12. If Object = 7XX, Purpose code must be = 8XXX
13. Account with purpose code 8200 and object code 399, is for budgeting only.
This account cannot be used for expenditures.
14. Local Fund 2 PRC 056 should mirror the State Fund 1 PRC 056.
Some other COA Rules
For information purposes, Vendors do not necessarily need to edit:
1. For Funds transferred to Charter Schools, use account 81XX-XXX-717,
where XXX is appropriate PRC.
2. Installment Collapse codes:
1-5110-001-120
1-5110-001-210
1-5110-001-220
3. Installment Indicators
N.C. Department of Public Instruction
Division of School Business
Contract: Roxane Bernard
(919) 807-3725 or roxane.bernard@dpi.nc.gov